Comprised of client renewal data on property, casualty, and financial and professional lines of business, weighted by premium placed, taken from 20 large economies across all continents, Marsh’s latest “Global Insurance Market Quarterly Briefing” indicates a continuation of firming.
The composite index of 1.014 in the second quarter of 2012 indicates that rates at renewal have increased by 1.4 percent compared to renewal rates in the second quarter of 2011.
According to Marsh, the increase in property insurance rates is being driven by unexpected adverse loss developments from last year’s major catastrophes, an increased focus by insurers on the quality of data provided by insureds, a rise in attritional losses, and changes to the way insurers are calculating their risk-adjusted cost of capital.
Although rates rose during the second quarter, the increase was less pronounced than in the previous two quarters. And, while the index shows that insurance rates for financial and professional lines declined slightly after rising during the previous two quarters, the overall trend suggests that the multiyear slide in liability insurance rates is coming to an end.
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